The New and Improved (REALLY) Home Affordable Refinance Program (HARP)…What You and Your Friends Need to Know!
Monday, the Federal Housing Finance Agency (FHFA) announced their enhancements to the HARP refinancing program. Operational details of the plan are to be released on November 15. Only loans that were purchased or guaranteed by Fannie Mae or Freddie Mac on or before May 31, 2009 and have a current LTV over 80% are eligible. In addition, the loan must be current, no late payments in the last six months and no more than one late in the last 12 months. There are no restrictions on who may refinance these loans. Program guidelines include:
- No limit on Loan to Value (LTV), if new loan is a fixed rate loan (current LTV must be above 80%)
- Loans previously refinanced under HARP not allowed
- No cash out is allowed
- Certain agency fees will be waived if new loan is a shorter term loan
- Appraisals not required where Agency AVM is available
- Certain originator Reps and Warrants will be waived
So what does that mean in non-mortgage geek speak?
This may be the one Government sponsored refinance program that actually helps homeowners and halts the slide of the housing market!
If you owe more on your home than it is worth and have a conventional loan (not FHA, VA, USDA or portfolio loan), you may be able to refinance into a lower rate…even if you were not previously able to do so. From what I can see about this program, there are NO Loan-to-Value limits…which mean that even if you owe $100,000 more than your home’s current value, you may still be able to qualify for a lower rate refinance.
What do you need to do now?
If you (or someone you know) would like to know if you qualify for this program, please call Kyle at 734-634-9450 or Linda at 248-334-9400 and we will help you determine if your loan qualifies to be refinanced under this program.
Folks, there will literally be MILLIONS of homeowners inquiring to take advantage of this program. It is safe to say the lenders, banks and investors will be bottle-necked with loan applications by the middle of December or early January. If you want to be at the FRONT OF THE LINE, please call us this week and we’ll put you at the top of our list of clients to call when the details are released. The bottom line is that luck favors the prepared…don’t wait on this one.
Thanks and have a great week!
New HARP Information available, check out our latest post at HARP Details and FAQ’s
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